Platts reported that the Singapore Exchange has confirmed it is considering launching coking coal swaps. The exchange has not given any further details, but market sources told Platts that the swaps would be based off The Steel Index’s premium hard coking coal FOB Australia reference price.
As quoted in the market news:
‘Market consultation indicates that an SGX-cleared coking coal product would be strongly complementary to SGX iron ore products,’ Srinidhi Udupi Raghavendra, SGX’s vice president (product management) derivatives, told Platts.
SGX hosts the world’s most liquid iron ore options and swaps contracts and currently markets its futures contract hosted on its SGXQuest electronic market.
‘With respect to specific [coking coal] contract details and market microstructure, SGX will be guided by client demand and market readiness, and keep the marketplace informed of any new developments in due course,’ he said.